NACM Releases Commercial Credit Reporting Fact Sheet to SupportNational Small Business Week
In support of National Small Business Week, the National Association of Credit Management (NACM) released a fact sheet today offering the nation’s small businesses a quick reference document on commercial credit reporting. The free fact sheet, titled “Commercial Credit Reporting: What Every Company Needs to Know,” provides the smallest of the nation’s firms with the information they need to be able to manage their own company’s commercial credit profile.
A number of small companies only rely on the owner’s personal consumer credit to operate the business. They may not be aware of, or know enough about commercial credit and commercial credit reporting to establish and build a strong commercial credit profile, which can help these businesses acquire better bank financing and the crucial goods and services needed from other trade suppliers on an unsecured basis. “NACM hopes the fact sheet will help companies build their credit and support their financial practices,” said NACM President Robin Schauseil, CAE. “It is imperative to eliminate any misconceptions and educate companies about commercial credit and commercial credit reports, especially among small businesses, the drivers of the nation’s economy.”
NACM began to develop the fact sheet earlier this year in response to reports from its membership and certain state legislators that many small businesses were falling prey to aggressive sales tactics from commercial credit monitoring services. Salespeople from some of the companies that provide such services have called small- and micro-business owners and unwittingly fooled them into believing that they needed to pay for a product that would improve and address errors in their company’s commercial credit report.
“Much like in the consumer credit world, companies have the right to view and address discrepancies in their credit report for free,” said Schauseil. “More than that, they have the right to not be taken advantage of by unscrupulous salespeople trying to scare up business by making false claims.”
“Any company, no matter how small, will have the knowledge necessary to avoid getting snared by these offers if they are armed with the information included in the ‘Commercial Credit Reporting: What Every Company Needs to Know’ fact sheet. They will also have the knowledge to find and view their company’s commercial credit report and use that information to build their credit, along with their business,” she added.
“NACM was founded more than a century ago to protect the free and open exchange of credit information between businesses,” said NACM National Chairman Toni Drake, CCE. “Educating the nation’s businesses about the important things that differentiate consumer credit from commercial credit is one of the association’s chief priorities, and that tradition continues today with the ‘Commercial Credit Reporting’ fact sheet.”
“It’s so important in today’s economy for business owners to separate their own finances from their companies’. They also need to separate their credit histories to ensure that they don’t become personally liable for their business’ troubles,” she said.
The full fact sheet, in PDF format, can be downloaded for free here. For more resources on the importance of recognizing the differences between consumer and commercial credit, please contact NACM at 410-740-5560.